In light of the promised Rs 1,500 crore fund infusion not being released by lenders, the board of directors of the crippled Jet Airways will meet Tuesday to discuss the further course of action.
While Rs 1,500 crore is a small dose of funds for the airline, which has debt and payables exceeding Rs 10,000 crore, the money was deemed necessary for Jet’s daily operations, which have already been curtailed due to non-payment of rentals to aircraft lessors. What was once a 123-aircraft fleet has now been reduced to a meagre seven-plane operation.
It is pertinent to note that the lenders are in process of shortlisting potential investors in Jet Airways that will pick up the stake pledged with lenders by the airline’s founder and former chairman Naresh Goyal.
According to Jet’s CEO Vinay Dube, the airline’s board will meet today to provide guidance to the management on future steps and the outcome assumes significance as it will decide whether — till such a time an investment is made — India’s oldest private carrier stays airborne or is grounded.